How Much Can You Make Selling Goods on Amazon?


Amazon is one of the largest online retailers in the world. In 2017, it had over 220 million active users and $178 billion in revenue. The platform sells a wide range of products on its website. They include electronics, clothing, toys, jewelry, food products, and books, among many others. One of the most intriguing aspects of Amazon is that anyone can use the Fulfillment by Amazon or Seller Central programs to sell their products on the site.

How Much Money Could You Make Selling Your Goods on Amazon?

The majority of Amazon sellers earn at least $1000 per month on average. Yet, some Amazon sellers earn more than $100,000 per month. Several factors determine your potential earnings as an Amazon seller.

These factors include the type of product you sell, your geographic location, and the market’s competitive landscape. Some markets have a lot of competition, whereas others have less, giving you more room to set higher prices and earn more profits over time.

Keep in mind that even if you have a fantastic business idea, it may take up to six months before you start earning a substantial income from Amazon. You can expect to incur some expenses during this initial period, such as purchasing custom shipping boxes and shipping your products. If you plan on selling imported products, you may need to take an Incoterms Rules training to educate yourself about international trading.

However, after the initial investment of time and money, you should begin to see a positive return on your investment in the form of increased earnings. If you want to expedite the process, consider using an Amazon agency. They will assist you in navigating this vast jungle and increasing your sales more quickly in the long run.

What You Will Need to Sell on Amazon

To sell items on Amazon, you must first enroll in the Fulfillment by Amazon program. Companies and individuals use this program to send their products to an Amazon fulfilment centre. They store them until they receive an order.

When this occurs, you are only charged a fee, depending on what you sell and the shipment method. When it comes to subscription fulfillment, there is no one-size-fits-all solution. Whether you are dealing with subscription orders for a magazine, music streaming service, meal delivery service, or anything else, the key to success is careful planning and attention to detail. At the start of each subscription cycle, a thorough analysis of customer needs and preferences must be done in order to develop the right subscription plans and offers. Then, when the subscription orders start rolling in, everything from processing payments and billing to actually shipping out the items needs to be handled with care and diligence. Ultimately, subscription fulfillment is all about anticipating customer needs and delivering high quality results each and every time. So if you want your subscription business to thrive, make sure you are focusing on every aspect of your subscription fulfillment process!

Sell Central is the second option if you want to sell items on Amazon. Sellers who go this route have their website or storefront where customers can buy the items they’re selling. This is a good option for sellers who want to include more personalized product information on their websites. Or who want to have a storefront where they can display all the products they sell.

You set your pricing, shipping rates, and additional fees when you use this program. Sellers can also access performance metrics, which show how visitors interact with their website, allowing them to maximize sales opportunities.

Calculation on How Much Money You Could Make on Amazon

Assume you are selling an Echo Dot, one of the most popular items available through Fulfillment by Amazon. People who buy these devices frequently use them to make their homes smarter by connecting them to other devices in their homes.

To earn $20 per unit through Fulfillment by Amazon, you’d need to spend $42.99 plus shipping costs to purchase an Echo Dot for each sale, according to Amazon’s market share.

When calculating additional costs, keep in mind that Amazon charges a fee on each sale. The standard fee for using Fulfillment by Amazon is 15% of the product’s price or $6.39 per unit.

To reach your earning goal of $20, you’d need to sell approximately 3,291 units, totaling $64,878 in revenue. Of course, this is only possible if you sell all those units at your retail price.

Keep in mind that you will incur additional fees from Fulfillment by Amazon, which will vary depending on the type of shipping option selected by the customer.

Based on this example, there’s a good chance of success selling goods on Amazon. If you want to make your first sale, you need to find an audience interested in buying what you’re selling. The more targeted traffic you can direct to your listings, the better your chances of making sales.

Devise a Marketing Strategy

While there are many methods for marketing your products on Amazon, one of the most effective is to use Amazon PPC ads. These ads enable sellers to display their products in response to customer search terms. It raises brand awareness and encourages people who are unfamiliar with the product to purchase it.

This strategy is particularly effective for newer brands with few reviews or established websites. This is because it appears before other sponsored ad results, making yours stand out even more.

Final Remarks

While there is no way to know how much money you can make selling goods on Amazon, the potential is undeniable based on the example above. It is possible to turn a profit relatively quickly if your company has a well-organized marketing plan and a list of products that people want.

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